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Code · U.S. Code · Title 12 - BANKS AND BANKING · CHAPTER 23— FARM CREDIT SYSTEM · SUBCHAPTER IV— PROVISIONS APPLICABLE TO TWO OR MORE CLASSES OF INSTITUTIONS OF THE SYSTEM · § 2199

§ 2199. Disclosure

645 words·~3 min read·/usc/title-12/section-2199

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)In general In accordance with regulations of the Farm Credit Administration, qualified lenders shall provide to borrowers, for all loans that are not subject to the Truth in Lending Act (15 U.S.C. 1601 et seq.), meaningful and timely disclosure not later than the time of the loan closing, of—
(1)the current rate of interest on the loan;
(2)in the case of an adjustable or variable rate loan, the amount and frequency by which the interest rate can be increased during the term of the loan or, if there are no such limitations, a statement to that effect, and the factors (including the cost of funds, operating expenses, and provision for loan losses) that will be taken into account by the qualified lender in determining adjustments to the interest rate;
(3)the effect, as shown by a representative example or examples, of any loan origination charges or purchases of stock or participation certificates on the effective rate of interest;
(4)any change in the interest rate applicable to the borrower’s loan, and notice to the borrower of a change in the interest rate applicable to the loan of the borrower may be made within a reasonable time after the effective date of an increase or decrease in the interest rate;
(5)except with respect to stock guaranteed under section 2162 of this title, a statement indicating that stock that is purchased is at risk; and
(6)a statement indicating the various types of loan options available to borrowers, with an explanation of the terms and borrowers’ rights that apply to each type of loan.
(b)Differential interest rates A qualified lender offering more than one rate of interest to borrowers shall, at the request of a borrower of a loan—
(1)provide a review of the loan to determine if the proper interest rate has been established;
(2)explain to the borrower in writing the basis for the interest rate charged; and
(3)explain to the borrower in writing how the credit status of the borrower may be improved to receive a lower interest rate on the loan.
(Pub. L. 92–181, title IV, § 4.13, as added Pub. L. 99–205, title III, § 301(b), Dec. 23, 1985, 99 Stat. 1707; amended Pub. L. 100–233, title I, §§ 103, 109, Jan. 6, 1988, 101 Stat. 1579, 1584; Pub. L. 104–105, title II, § 207, Feb. 10, 1996, 110 Stat. 173.)
Connections28 cite this · traces to 4
16 references not yet in our index
  • Pub. L. 92–181, title IV, § 4
  • Pub. L. 99–205, title III, § 301(b)
  • 99 Stat. 1707
  • Pub. L. 100–233, title I
  • 101 Stat. 1579
  • Pub. L. 104–105, title II, § 207
  • 110 Stat. 173
  • Pub. L. 90–321
  • 82 Stat. 146
  • Pub. L. 92–181, title IV
  • 85 Stat. 613
  • Pub. L. 99–205, title III, § 301(a)
  • Pub. L. 104–105
  • Pub. L. 100–233, § 109
  • Pub. L. 100–233, § 103
  • section 401 of Pub. L. 99–205
Citation graph
cites case law
§ 2199
Disclosure
Fed. Reg.×9
Bills×6
Stat.×5
U.S.C.×5
Stat. Comp.×2
Pub. L.×1
Pub. L.Pub. L. 92–181, title IV, § 4
Pub. L.Pub. L. 99–205, title III, § 301(b)
Stat.99 Stat. 1707
Pub. L.Pub. L. 100–233, title I
Stat.101 Stat. 1579
Cites 20 · showing 9Cited by 28 across 6 sources
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